Kansas House Bill HB2128

Kansas 2025-2026 Regular Session

• Introduced: 1/28/25
• Refer: 1/28/25
• Report Pass: 2/17/25
• Engrossed: 2/20/25
• Refer: 2/26/25
• Report Pass: 3/18/25

Caption

Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.

Impact

The bill amends several sections of the Kansas Statutes Annotated related to insurance regulations, particularly concerning risk-based capital (RBC) reports and the operations of insurance holding companies. This legislative move aims to enhance transparency and regulatory rigor by adopting provisions from the National Association of Insurance Commissioners (NAIC). The potential impact of these amendments includes improved regulatory compliance from insurers and better assessment of financial health through group capital calculations and liquidity stress testing, which are essential for maintaining the stability of the insurance market.

Summary

House Bill 2128 proposes significant changes to the regulation of insurance in Kansas. The bill authorizes the commissioner of insurance to select and publish specific instructions, calculations, and documents relevant to insurance regulation for each calendar year, ensuring that stakeholders are aware of the applicable guidelines. Moreover, it allows certain life insurers to adopt health financial reporting methods, which could align more closely with broader health insurance practices, thereby updating and modernizing financial oversight within the sector.

Contention

There are notable points of contention surrounding the implications of House Bill 2128. Supporters argue that these updates will lead to more uniform and effective regulatory practices that align Kansas' insurance laws with national standards. However, critics may raise concerns about the burden these additional reporting requirements could impose on small insurers, impacting their operational flexibility. The balance that the bill strikes between regulatory compliance and the operational realities faced by insurers—especially smaller firms—will be a pivotal aspect of the discussions as it moves forward.